Yield Curve Patterns: Is a Recession Around the Corner?

From Investing.com: 2024-05-10 15:26:00

The yield curve dynamics are a crucial macro variable that informs us on today’s borrowing conditions and market future expectations for growth and inflation. An inverted yield curve often leads to a recession, while a steep yield curve signals accessible borrowing costs and expectations for solid growth and inflation. Rapid changes in the yield curve shape at different stages of the cycle are important for portfolio allocation. Currently, the US yield curve has been inverted for over 20 months, with private sector job creation slowing down, raising concerns about a potential recession. Stay informed and watch for a dis-inversion as a key signal.



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